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Think Childcare

ASX:TNK
Snowflake Description

Undervalued with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TNK
ASX
A$104M
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

Think Childcare Limited owns, operates, and manages childcare facilities in Australia. The last earnings update was 81 days ago. More info.


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TNK Share Price and Events
7 Day Returns
2.1%
ASX:TNK
5.6%
AU Consumer Services
1%
AU Market
1 Year Returns
-1.4%
ASX:TNK
38.3%
AU Consumer Services
2.4%
AU Market
TNK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Think Childcare (TNK) 2.1% 4.1% -4.4% -1.4% 11.7% -
AU Consumer Services 5.6% 3.8% 5.7% 38.3% -4.9% -15.6%
AU Market 1% 1.5% 4.3% 2.4% 17.6% 7.4%
1 Year Return vs Industry and Market
  • TNK underperformed the Consumer Services industry which returned 38.3% over the past year.
  • TNK underperformed the Market in Australia which returned 2.4% over the past year.
Price Volatility
TNK
Industry
5yr Volatility vs Market

Value

 Is Think Childcare undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Think Childcare to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Think Childcare.

ASX:TNK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.7%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:TNK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.943 (1 + (1- 30%) (25.6%))
1.075
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.075 * 5.96%)
8.72%

Discounted Cash Flow Calculation for ASX:TNK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Think Childcare is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:TNK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.72%)
2019 7.20 Analyst x1 6.62
2020 9.70 Analyst x1 8.21
2021 13.60 Analyst x1 10.58
2022 16.84 Est @ 23.79% 12.05
2023 19.76 Est @ 17.35% 13.01
2024 22.29 Est @ 12.84% 13.50
2025 24.45 Est @ 9.68% 13.62
2026 26.28 Est @ 7.47% 13.46
2027 27.83 Est @ 5.92% 13.11
2028 29.18 Est @ 4.84% 12.65
Present value of next 10 years cash flows A$116.80
ASX:TNK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$29.18 × (1 + 2.31%) ÷ (8.72% – 2.31%)
A$465.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$465.84 ÷ (1 + 8.72%)10
A$201.89
ASX:TNK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$116.80 + A$201.89
A$318.69
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$318.69 / 60.47
A$5.27
ASX:TNK Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$5.27
Current discount Discount to share price of A$1.72
= -1 x (A$1.72 - A$5.27) / A$5.27
67.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Think Childcare is available for.
Intrinsic value
>50%
Share price is A$1.72 vs Future cash flow value of A$5.27
Current Discount Checks
For Think Childcare to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Think Childcare's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Think Childcare's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Think Childcare's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Think Childcare's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:TNK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.10
ASX:TNK Share Price ** ASX (2019-05-17) in AUD A$1.72
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 18.32x
Australia Market PE Ratio Median Figure of 542 Publicly-Listed Companies 16.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Think Childcare.

ASX:TNK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:TNK Share Price ÷ EPS (both in AUD)

= 1.72 ÷ 0.10

16.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Think Childcare is good value based on earnings compared to the AU Consumer Services industry average.
  • Think Childcare is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Think Childcare's expected growth come at a high price?
Raw Data
ASX:TNK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
28.6%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Services Companies 1.33x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

ASX:TNK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.44x ÷ 28.6%

0.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Think Childcare is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Think Childcare's assets?
Raw Data
ASX:TNK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$0.80
ASX:TNK Share Price * ASX (2019-05-17) in AUD A$1.72
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 2.16x
Australia Market PB Ratio Median Figure of 1,677 Publicly-Listed Companies 1.66x
ASX:TNK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:TNK Share Price ÷ Book Value per Share (both in AUD)

= 1.72 ÷ 0.80

2.16x

* Primary Listing of Think Childcare.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Think Childcare is good value based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess Think Childcare's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Think Childcare has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Think Childcare expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Think Childcare expected to grow at an attractive rate?
  • Think Childcare's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Think Childcare's earnings growth is expected to exceed the Australia market average.
  • Think Childcare's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:TNK Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:TNK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 28.6%
ASX:TNK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 22.5%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 20.3%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.1%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:TNK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:TNK Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 170 18 12 4
2020-12-31 142 15 10 4
2019-12-31 111 11 7 4
ASX:TNK Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 85 9 5
2018-09-30 78 6 4
2018-06-30 71 4 4
2018-03-31 68 5 5
2017-12-31 66 5 6
2017-09-30 63 5 6
2017-06-30 60 5 6
2017-03-31 57 5 6
2016-12-31 55 6 5
2016-09-30 53 7 5
2016-06-30 50 7 5
2016-03-31 48 7 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Think Childcare's earnings are expected to grow significantly at over 20% yearly.
  • Think Childcare's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:TNK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Think Childcare Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TNK Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.19 0.21 0.17 3.00
2020-12-31 0.16 0.17 0.15 3.00
2019-12-31 0.12 0.13 0.11 3.00
ASX:TNK Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.10
2018-09-30 0.10
2018-06-30 0.09
2018-03-31 0.11
2017-12-31 0.14
2017-09-30 0.15
2017-06-30 0.15
2017-03-31 0.14
2016-12-31 0.13
2016-09-30 0.13
2016-06-30 0.13
2016-03-31 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Think Childcare is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Think Childcare's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Think Childcare has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Think Childcare performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Think Childcare's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Think Childcare has delivered over 20% year on year earnings growth in the past 5 years.
  • Think Childcare's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Think Childcare's 1-year earnings growth is negative, it can't be compared to the AU Consumer Services industry average.
Earnings and Revenue History
Think Childcare's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Think Childcare Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:TNK Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 85.29 4.95 69.27
2018-09-30 78.36 4.37 63.74
2018-06-30 71.43 3.97 57.97
2018-03-31 68.47 4.96 54.97
2017-12-31 65.50 5.77 52.21
2017-09-30 62.69 6.12 49.65
2017-06-30 59.89 6.46 47.09
2017-03-31 57.21 5.91 44.80
2016-12-31 54.54 5.37 42.52
2016-09-30 52.51 5.34 40.57
2016-06-30 50.49 5.31 38.62
2016-03-31 48.50 5.06 37.00
2015-12-31 46.51 4.81 35.38
2014-12-31 17.35 -14.50 23.39

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Think Childcare has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Think Childcare used its assets more efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • Think Childcare's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Think Childcare's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Think Childcare has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Think Childcare's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Think Childcare's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Think Childcare's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Think Childcare's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Think Childcare's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Think Childcare Company Filings, last reported 4 months ago.

ASX:TNK Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 38.63 26.63 3.56
2018-09-30 38.63 26.63 3.56
2018-06-30 34.61 20.58 3.89
2018-03-31 34.61 20.58 3.89
2017-12-31 25.06 19.61 0.45
2017-09-30 25.06 19.61 0.45
2017-06-30 23.07 12.23 2.05
2017-03-31 23.07 12.23 2.05
2016-12-31 21.21 10.34 1.80
2016-09-30 21.21 10.34 1.80
2016-06-30 18.08 5.46 2.76
2016-03-31 18.08 5.46 2.76
2015-12-31 17.38 5.41 2.36
2014-12-31 12.57 5.00 4.36
  • Think Childcare's level of debt (68.9%) compared to net worth is high (greater than 40%).
  • Unable to establish if Think Childcare's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (33.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
X
Financial health checks
We assess Think Childcare's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Think Childcare has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Think Childcare's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.78%
Current annual income from Think Childcare dividends. Estimated to be 5.49% next year.
If you bought A$2,000 of Think Childcare shares you are expected to receive A$76 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Think Childcare's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.65%).
  • Think Childcare's dividend is below the markets top 25% of dividend payers in Australia (5.83%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:TNK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:TNK Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.11 4.00
2020-12-31 0.10 4.00
2019-12-31 0.08 4.00
ASX:TNK Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-26 0.065 3.784
2018-08-22 0.000 0.000
2018-02-15 0.100 5.558
2017-08-14 0.090 4.465
2017-02-15 0.100 4.587
2016-08-11 0.080 3.643
2016-02-22 0.072 4.898

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Think Childcare has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Think Childcare has only been paying a dividend for 3 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Think Childcare's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess Think Childcare's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Think Childcare afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Think Childcare has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Think Childcare's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mathew Edwards
COMPENSATION A$291,229
TENURE AS CEO 4.7 years
CEO Bio

Mr. Mathew Edwards serves as the Chief Executive Officer of Think Childcare Limited. since September 17, 2014 and serves as its Managing Director. Mr. Edwards has been involved in childcare since 2001. He was the Managing Director of LEA since 2009 and has overseen the development of the business of improving and managing Childcare Centres, with ownership of Centres in Victoria, NSW, WA and SA with the business growing to operate several Centres in Victoria. Prior to LEA, Mr. Edwards was a director of Australian Daycare Group and has extensive management experience in retail and commercial property roles. Mr. Edwards has taken greenfield sites through the negotiation, design and construction process to fully occupied and profitable operational licensed Centres. Mr. Edwards is also a director of Baker Street. He has extensive experience in business strategy and management of multi-site businesses. Mr. Edwards has been a Director of Think Childcare Limited (also known as, Think Childcare and Education Limited.) since July 21, 2014. Mr. Edwards was a director of Games R Us Australia Ltd, to which voluntary administrators were appointed in 2001.

CEO Compensation
  • Mathew's compensation has been consistent with company performance over the past year.
  • Mathew's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Think Childcare management team in years:

0.8
Average Tenure
  • The average tenure for the Think Childcare management team is less than 2 years, this suggests a new team.
Management Team

Mathew Edwards

TITLE
MD, CEO & Director
COMPENSATION
A$291K
TENURE
4.7 yrs

Jennifer Saliba

TITLE
Chief Financial Officer
COMPENSATION
A$407K
TENURE
1.1 yrs

Amanda Mawer

TITLE
National Service Delivery Manager
COMPENSATION
A$168K
TENURE
0.5 yrs

Trinh Bui

TITLE
General Counsel & Joint Company Secretary
TENURE
1 yrs

Michelle Carlin

TITLE
Director of Marketing
TENURE
0.5 yrs

Kelly Allison

TITLE
People & Culture Manager
TENURE
0.5 yrs

Mourice Garbutt

TITLE
Joint Company Secretary
Board of Directors Tenure

Average tenure of the Think Childcare board of directors in years:

1.1
Average Tenure
  • The average tenure for the Think Childcare board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mark Kerr

TITLE
Chairman
COMPENSATION
A$131K
AGE
60

Mathew Edwards

TITLE
MD, CEO & Director
COMPENSATION
A$291K
TENURE
4.8 yrs

Evonne Collier

TITLE
Independent Non-Executive Director
COMPENSATION
A$56K
TENURE
1.1 yrs

Joe Dicks

TITLE
Independent Non-Executive Director
COMPENSATION
A$56K
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
02. Apr 19 Buy AustralianSuper Pty Ltd Company 19. Feb 19 19. Feb 19 170,000 A$1.80 A$306,000
02. Apr 19 Buy FIL Limited Company 15. Mar 18 29. Mar 19 1,527,444 A$1.99 A$3,039,613
02. Apr 19 Buy FIL Limited Company 12. Dec 17 29. May 18 531,499 A$1.89 A$1,004,060
02. Apr 19 Buy Challenger Limited Company 29. Mar 19 29. Mar 19 42,151 A$1.58 A$66,599
02. Apr 19 Sell Challenger Limited Company 20. Feb 19 20. Mar 19 -183,600 A$1.77 A$-315,533
02. Apr 19 Buy Challenger Limited Company 24. Jan 19 24. Jan 19 120,000 A$1.43 A$171,600
02. Apr 19 Sell NovaPort Capital Pty Limited Company 20. Feb 19 20. Mar 19 -183,600 A$1.77 A$-315,533
02. Apr 19 Buy NovaPort Capital Pty Limited Company 06. Nov 18 24. Jan 19 354,142 A$1.48 A$472,539
13. Dec 18 Sell Mathew Edwards Individual 11. Dec 18 11. Dec 18 -200,000 A$1.30 A$-260,000
19. Nov 18 Buy Challenger Limited Company 27. Aug 18 15. Nov 18 503,846 A$1.54 A$700,778
05. Sep 18 Buy NovaPort Capital Pty Limited Company 29. Jun 18 03. Sep 18 436,427 A$1.69 A$680,355
31. Aug 18 Sell Mathew Edwards Individual 28. Aug 18 28. Aug 18 -100,000 A$1.45 A$-145,000
28. Aug 18 Buy Challenger Limited Company 07. Aug 18 24. Aug 18 143,912 A$1.69 A$214,059
X
Management checks
We assess Think Childcare's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Think Childcare has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Should Investors Know About Think Childcare Limited's (ASX:TNK) Earnings Trend?

The latest earnings announcement Think Childcare Limited (ASX:TNK) released in December 2018a

Simply Wall St -

Think Childcare Limited (ASX:TNK): 4 Days To Buy Before The Ex-Dividend Date

Important news for shareholders and potential investors in Think Childcare Limited (ASX:TNK): The dividend payment of AU$0.065 per share will be distributed to shareholders on 28 March 2019, and the stock will begin trading ex-dividend at an earlier date, 18 March 2019. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

Think Childcare Limited (ASX:TNK) Insiders Have Been Selling

So before you buy or sell Think Childcare Limited (ASX:TNK), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Think Childcare. … As a general rule we consider it to be discouraging when insiders are selling below the current price.

Simply Wall St -

How Does Think Childcare Limited (ASX:TNK) Fare As A Dividend Stock?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … In the last few years Think Childcare Limited (ASX:TNK) has paid a dividend to shareholders. … Let's take a look at Think Childcare in more detail.

Simply Wall St -

Don't Sell Think Childcare Limited (ASX:TNK) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Think Childcare has a price to earnings ratio of 18.15, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Think Childcare Limited (ASX:TNK) A Financially Sound Company?

While small-cap stocks, such as Think Childcare Limited (ASX:TNK) with its market cap of AU$65m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

Do Directors Own Think Childcare Limited (ASX:TNK) Shares?

Generally speaking, as a company grows, institutions will increase their ownership. … Think Childcare is a smaller company with a market capitalization of AU$69m, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Think Childcare

Simply Wall St -

Should Think Childcare Limited (ASX:TNK) Be Part Of Your Dividend Portfolio?

Think Childcare Limited (ASX:TNK) has paid a dividend to shareholders in the last few years. … Does Think Childcare tick all the boxes of a great dividend stock? … View our latest analysis for Think Childcare

Simply Wall St -

Should You Consider Think Childcare Limited (ASX:TNK)?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Think Childcare Limited (ASX:TNK) due to its excellent fundamentals in more than one area.

Simply Wall St -

What You Must Know About Think Childcare Limited's (ASX:TNK) Return on Equity

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Think Childcare has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Company Info

Description

Think Childcare Limited owns, operates, and manages childcare facilities in Australia. The company operates and manages approximately 78 long day childcare facilities for children between the ages of 6 weeks and 6 years old. It also identifies and develops greenfield services as child care services; and offers consultancy services to third parties and incubator partners to identify and develop greenfield services. The company was formerly known as Think Childcare and Education Limited and changed its name to Think Childcare Limited in July 2015. Think Childcare Limited was incorporated in 2014 and is based in Drummoyne, Australia.

Details
Name: Think Childcare Limited
TNK
Exchange: ASX
Founded: 2014
A$104,016,592
60,474,763
Website: http://www.thinkchildcare.com.au
Address: Think Childcare Limited
1 Park Avenue,
Suite 3,
Drummoyne,
New South Wales, 2047,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX TNK Ordinary Shares Australian Securities Exchange AU AUD 24. Oct 2014
CHIA TNK Ordinary Shares Chi-X Australia AU AUD 24. Oct 2014
Number of employees
Current staff
Staff numbers
0
Think Childcare employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/18 10:35
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/03/27
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.